Record surge in MGA applications signals shift toward regulated casino markets

A surge in licence applications to the Malta Gaming Authority (MGA) is reinforcing the jurisdiction’s position as one of the most established regulatory hubs in the European iGaming sector. Recent performance data shows sustained demand from operators seeking entry into regulated markets.

Between January and June 2025, the Authority received 28 applications for new gaming licences and issued eight approvals

Rising taxes and fees in major markets are encouraging relocation strategies

A big factor supporting Malta’s appeal is the steady increase in regulatory costs across major European markets. In the United Kingdom, for example, the tax on online casino and slot revenue, known as Remote Gaming Duty, rose from 21% to 40% in April 2026, while licence fees are also scheduled to increase by 20% to 30% from October 2026, adding significant pressure on operator margins.

These cost dynamics are influencing corporate decisions, scaling back on the most expensive verticals like live casino games, cutting some of the promotional spending, or even relocating the company’s headquarters. One such example comes from the UK, where Sky Bet decided to move its HQ to Malta, expecting to reduce its tax burden by roughly £55 million per year.

Similar financial pressures are visible elsewhere in Europe. Italy has introduced some of the highest market entry costs, with a single online licence now priced at approximately €7 million for a nine-year concession, alongside ongoing revenue-based charges. Germany applies complex federal and state taxation structures that can push effective rates above 30% of gross gaming revenue, while Sweden and Norway maintain strict compliance regimes and high operational costs tied to consumer protection and enforcement requirements.

More compliance requirements

Beyond taxes and licensing fees, operators are facing a growing set of compliance obligations across European markets. In the United Kingdom, recent reforms have introduced affordability checks that require operators to assess players’ financial risk, along with enhanced customer monitoring and stricter identity verification. These measures increase both staffing needs and investment in compliance systems.

Similar developments are visible elsewhere. Germany has implemented a centralised player monitoring system alongside a nationwide monthly deposit limit of €1,000 per player, significantly restricting spending and requiring real-time tracking across operators. Sweden has tightened rules on bonuses, marketing, and responsible gambling interventions, while in the Netherlands, operators must actively monitor player behaviour and intervene when risk indicators appear.

Newly regulating markets are also embedding strict requirements from the outset, including anti-money laundering controls, source-of-funds checks, and detailed reporting obligations. As compliance shifts from a one-time licensing process to continuous oversight, many operators are centralising these functions in jurisdictions with established regulatory infrastructure, such as Malta.

Enforcement pressure on unlicensed operators as well

At the same time, scrutiny toward unlicensed operators has intensified across Europe, pushing more businesses toward regulated frameworks. Regulators are expanding enforcement measures, including investigations, licence suspensions, and monitoring of suspicious activity.

For example, during the same six-month period in 2025, the MGA reviewed 75 websites linked to unauthorised gaming activity and identified dozens that falsely claimed regulatory approval. Authorities are also increasingly willing to suspend or revoke licences for non-compliance, with multiple cancellations and penalties issued in recent years. This stricter enforcement environment raises the operational risk of remaining outside regulated systems, a trend that is increasingly being mirrored in other regulated and newly regulating markets globally.

Malta as an iGaming base

Holding an MGA licence can not replace national licences or allow operators to skip due work in compliance, but being based in Malta can provide a structured and recognised operational base from which companies manage international activities. Malta’s business environment offers relatively competitive tax conditions, with a standard VAT rate of 18% compared to 20% in the UK, 21% in the Netherlands, and up to 22% in Italy, helping to ease cost pressures on operators as well. It also provides operational advantages, including access to a concentrated pool of talent, service providers, and commercial partners.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.rgf.org.mt/